BRP Q2 FY27: Revenue Up 18.5% but Swings to $136.8M Net Loss on Tariffs and Supplier Restructuring
DOO sits 30% above its 52-week low of $48.831.
Summary
BRP reported Q2 FY27 revenue of $2,236.8M, up 18.5% YoY, but swung to a $136.8M net loss as tariffs and a supplier restructuring crushed gross margins to 11.7%.
Key Events · Earnings and Guidance · DOO
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Q2 FY27 Net Loss of $136.8M
BRP swung to a net loss of $136.8M in Q2 FY27 from a $57.1M profit in Q2 FY26, despite revenue growth of 18.5% to $2,236.8M.
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Gross Margin Collapse to 11.7%
Gross profit fell 34.0% to $262.5M as gross margin dropped 940 bps to 11.7%, driven by Section 232 tariffs and a $74.8M supplier financial restructuring charge.
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Normalized EBITDA Down 34.9%
Normalized EBITDA declined to $138.8M from $213.2M a year ago, while normalized net loss was $13.0M versus normalized net income of $66.9M in Q2 FY26.
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Strong Free Cash Flow of $559.4M
H1 FY27 free cash flow more than doubled to $559.4M from $239.2M, driven by favorable working capital changes including higher provisions and lower trade receivables.
Analysis · DOO · Manufacturing
BRP's second quarter of fiscal 2027 delivered strong top-line growth of 18.5% to $2,236.8 million, but profitability collapsed. Gross margin fell 940 basis points to 11.7%, driven by Section 232 tariffs on steel, aluminum and copper imports into the U.S. and a $74.8 million supplier financial restructuring charge. The company swung from a $57.1 million profit a year ago to a $136.8 million net loss. Normalized EBITDA dropped 34.9% to $138.8 million. The balance sheet remains solid with $647.8 million in cash and $1,265 million available on its revolving credit facility, and free cash flow more than doubled to $559.4 million. The company also repurchased 2.26 million shares for $201.7 million under its NCIB, signaling management confidence despite near-term margin pressure.
How filings like this one have moved
In the 30 days to Sep 12, 2026, 35.9% of the 1612 measured filings Wiseek scored 8 moved their stock by 5% or more by the next session's close. The median move was -0.19%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, DOO was trading at $63.37 on NASDAQ in the Manufacturing sector, with a market capitalization of approximately $4.5B. The 52-week trading range was $48.83 to $81.89. This filing was assessed with negative market sentiment and an importance score of 8 out of 10.